Barrick Gold pondering over selling Lumwana copper mine over higher taxes in Zambia

Barrick Gold is weighing all options regarding the future of its Lumwana copper mine as Zambia considers implementing new increased mining taxes. It has announced that while it continues to engage with the government of Zambia and community stakeholders about a mutually-beneficial way forward for its Lumwana copper mine, it would consider selling the operation given the 'challenging conditions' it's confronting.

"The proposed changes to taxes and royalties would imperil the mine's ability to sustain returns to all stakeholders, such as the significant contribution of more than $3.3 billion it has already made to the Zambian economy over the past 10 years," Willem Jacobs, COO for Africa and the Middle East, Barrick said.

According to the Barrick official, getting a win-win solution between the government and industry will augment investor confidence in Zambia and maintain the long-term prospects of its mining sector. The gold giant has also placed proposals to the government of Zambia about a partnership approach that would offer the state with an improved share in the economics of the mine without overburdening it.

Mining contributes to over 70 percent of Zambia's foreign-exchange earnings, Mining Technology noted.